Final answer:
The right in question is known as riparian rights, which allow landowners bordering a waterway to use the water, provided it does not harm other owners. The establishment of clear property rights is essential in avoiding conflicts and ensuring that responsible parties address any damages.
Step-by-step explanation:
The right of a landowner whose land borders a stream or waterway to use and enjoy the water, while not injuring the rights of other owners, is known as riparian rights or sometimes as water rights. In the context of property rights, as noted by economist Ronald Coase, the definition and clarity of these legal rights are crucial. Without well-defined rights, endless conflicts can ensue without resolution. However, if property rights are clearly established, the parties involved will seek the least costly solution to resolve any issues arising from their use of the property. For example, if a landowner has the right not to have their property damaged, then others must avoid causing such damage or compensate the affected landowner. This principle extends to various scenarios such as construction and operation of railroads, rights of eminent domain, and environmental conservation.